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‘NAB now, pay later’: NAB launches BNPL

In the face of ever-increasing competition from fintechs in the buy now, pay later space, NAB has nabbed its share by launching its first BNPL product.

The “NAB Now Pay Later” product will give customers access to up to $1,000, split purchases into four payments as more customers turn to instalment payment services.

Last November, ASIC published findings that found 22 per cent of customers prioritised paying off their BNPL debt over loan repayments or bills.

Remarking on the growing trend towards BNPL services, NAB’s group executive personal banking Rachel Slade said customers are demanding simple and easy-to-understand credit.

“Hundreds of thousands of NAB customers are using instalment payment services so we’ve created NAB Now Pay Later to make this option simple and digital for them,” Ms Slade said.

The launch of NAB Now Pay Later marks an emerging trend of BNPL offerings arising from both lenders and payment organisations, including Suncorp bank’s PayLater, Visa’s BNPL product on offer to ANZ customers, CBA’s StepPay offering and Mastercard launched its BNPL service for lenders.

With a growing number of people using the instalment services, EY Oceania’s Tim Dring said it’s important Australian banks continue their simplification and digitisation strategies.

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Banks will also need to improve customer experience and provide relevant, personalised offerings to consumers, that integrate seamlessly into their day-to-day lives,” Mr Dring said.

NAB said its offering will be competitive by offering no late fees, interest fees or account fees and was “safer than the alternatives”.

Ms Slade said given customers signing up for the product are already NAB’s customers the bank knows their banking and credit history, providing a “safer” product.

The product has also been built for mobile with a range of new technology, including instant credit decisions and safety and security features.

“The virtual card also features biometric fraud detection and a dynamic CVV that refreshes regularly to protect customers from fraud and theft,” Ms Slade said.

The product is now integrated into the NAB app, giving customers who meet the eligibility criteria and credit assessment direct access to the features.

“This will ensure customers can have the confidence to appropriately manage their repayments, both today and in the future,” she said.

[Related: Simplification, digitisation tops banks' priorities in 2022]

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